An example of an intercompany transaction is the use of the trademarks of the parent corporation by a subsidiary for an arm's length licensing fee.

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Intercompany transactions involve financial activities between two entities within the same corporate group. When a subsidiary pays a licensing fee to its parent corporation for the use of trademarks, it is an example of such a transaction, reflecting the internal financial arrangements and transfers within the corporate structure.

An Example of an Intercompany Transaction Is the Use of the Trademarks